FAQ

How much coverage should i get for auto insurance

How much car insurance do I need?

Although the minimum amount of auto insurance you must have varies by state, it is recommended that you get as much auto insurance as you can reasonably afford.

calculate how much car insurance you need

types of car insurance coverage

bodily injury liability (bi)

how much bisexual coverage do you need?

While bodily injury minimums vary by state, all states except Florida require at least $25,000 of bodily injury coverage per accident.

Reading: How much coverage should i get for auto insurance

Having only the minimum amount of coverage could save you money on car insurance, but it could cost you dearly in the long run. Buying as much bodily injury coverage as you can afford could protect you from having to pay expensive medical bills out of pocket.

If you cause a serious car accident and another driver or passengers need expensive medical care beyond what their insurance covers, they could file a lawsuit to get you to pay out of pocket for their medical expenses. if you have a lot of financial assets like a house, you might be forced to sell them to pay off the lawsuit.

what does bodily injury liability cover?

Bodily injury liability coverage will pay for medical care, emergency services, lost wages, and even funeral expenses. Payments for bodily injury liability claims can vary widely depending on factors such as the severity of the injury.

Each day spent in a hospital can cost thousands of dollars in hospital care. That’s why it’s a good idea to increase your bodily injury limits if you can afford the cost.

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property damage liability (pd)

how much do you need?

Property damage liability is required in all states, with minimum property damage limits ranging from $5,000 to $25,000 per accident.

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While most of the minimum requirements are enough to cover average accident costs, you can always increase your protection for a small rate increase. this would protect you in worst case scenarios like crashing into a museum or wrecking someone else’s expensive sports car.

what does property damage liability cover?

Property damage liability pays for damage you cause to other people’s property as a result of a car accident, including damage to homes, stores, vehicles, yards, or other property. it does not cover damage you cause to your own car or property, such as crashing into your own garage.

personal injury protection (pip)

how much do you need?

16 states require drivers to have pip insurance. The minimum pip requirement varies by state, with minimum limits ranging from $2,000 per person in Maine to $250,000 in Michigan.

If your state does not require personal injury protection (pip) or medical payments coverage (medpay), you may choose not to participate in either coverage. you may want pip or medpay if your health insurance plan has a high deductible or doesn’t cover car accidents.

what does personal injury protection cover?

Personal Injury Protection (PIP) pays for medical expenses or rehabilitation costs in the event of an accident. pip protects you and your passengers if you’re driving, but it also protects you if you’re riding in another car or if you’re hit as a pedestrian.

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while pip is similar to bodily injury liability coverage, the main difference is that pip covers medical bills for you and your passengers, while bodily injury liability covers injuries from other drivers and passengers after an accident you cause.

collision and comprehensive coverage

how much do you need?

While state law doesn’t require collision or comprehensive coverage, anyone who buys a new or used car from a dealer with an auto loan or lease will likely need to purchase this coverage for their car before leaving the lot.

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Collision cost and comprehensive cost will change based on your car, your driving record and your deductible. a full coverage policy with collision and comprehensive coverage costs about twice as much as a policy with only minimum liability coverage.

In general, it’s worth dropping both collision and comprehensive coverage if the cost to replace your car is four to six times the annual cost of collision and comprehensive insurance. this generally means you can consider dropping full coverage when your car is between 8 and 12 years old and is worth between $5,000 and $10,000.

what does the collision and all risks cover?

Collision and comprehensive coverage payment to repair physical damage to your car, including payment for replacement parts, repainting, or a replacement car if your car is lost, stolen, or totaled.

Collision coverage protects your car from damage caused by accidents within the driver’s control, such as car crashes, fender strikes, or backing into a car in a parking lot. Comprehensive coverage, on the other hand, covers accidents that don’t involve other cars, like hitting a deer or having a tree branch fall on your car.

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uninsured/underinsured motorist coverage

how much do you need?

Uninsured and underinsured motorist coverage is required in 22 states and is generally inexpensive compared to other types of coverage.

what does uninsured/underinsured motorist coverage cover?

Underinsured and uninsured motorist coverage pays for your car repairs and/or medical bills if you are hit by an at-fault driver who is uninsured or has some insurance, but not enough to cover the damage of a accident.

There are two types of uninsured and underinsured motorist insurance: uninsured motorist bodily injury coverage (uim bi) covers your medical bills and recovery costs, while property damage coverage for uninsured motorists (uim pd) pays for damage to your car or home.

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